Prime Minister Shehbaz Sharif has announced a significant reduction of Rs7.41 per unit in electricity tariffs, providing much-needed relief to citizens struggling with high power bills.
Major Relief for Citizens and Industries
During an event in Islamabad on April 3, 2025, PM Shehbaz expressed his commitment to lowering electricity costs, acknowledging that securing approval from the International Monetary Fund (IMF) was a challenging process.
For industrial consumers, the government has implemented an even greater cut of Rs7.59 per unit. This move aims to boost industrial productivity and ease operational costs for businesses.
Government’s Strategic Decision
The announcement follows the government’s earlier hints about a “big gift” for the nation, which was promoted on social media with the hashtag #SmallEidBigGift in reference to Eidul Fitr.
Reports last month suggested a potential Rs8 per unit reduction in power rates. However, the government had to overcome final hurdles with the IMF before confirming the relief package.
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Economic Implications and Political Reactions
This decision comes amid the government’s broader economic strategy, which also includes maintaining petroleum prices at current levels. Officials have emphasized that this move will help stabilize the economy and counteract inflation.
Key political figures, including Rana Sanaullah and Defence Minister Khawaja Asif, have praised the initiative. They highlighted how this measure aligns with Pakistan’s economic recovery plan and efforts to ensure sustainable growth.
IMF Agreement and Future Outlook
The IMF had initially approved only a Rs1 per unit reduction in power tariffs but later allowed more flexibility. The government’s successful negotiations with the IMF led to unlocking a new $1.3 billion financial arrangement on March 26, strengthening Pakistan’s economic standing.
This electricity tariff cut is expected to bring relief to millions of households and businesses, signaling a positive step towards economic stability.